THE YACHT ATTORNEY

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We will design complete international legal, fiscal and economical solutions around

your yacht and will happily take care of all of its requirements during your ownership.. Der Yacht Anwalt

Prof. Dr. Christoph Ph. Schließmann

TheYachtAttorney

Yachting: Emotion · g uidanc E · Solution

hansaallee 22 d-60322 Frankfurt am Main Tel. +49 (69) 663779-0 Fax +49 (69) 663779-99 www.der-yacht-anwalt.de Blog: https://superyachtforum.eu/

Yacht owners looking for a legally secure and economical solution for the purchase and operation of their yacht no longer have so many options after the leasing models in the EU with a “VAT PAID certificate” were abolished due to legal violations. After all, VAT is one of the essential items in purchasing a yacht, at 18-25%, depending on the EU country.

Only suitable commercial arrangements remain to keep the yacht for EU-resident beneficial owners and users VAT-neutral.

Many owners, especially from Central European countries with strict tax conditions, rarely charter the yacht 100% to third parties but often want to use a significant part of it themselves.

Such an owner-self-charter for special conditions is possible, but always plus VAT payable on the charter, depending on the start of the charter and the routes.

However, so that a self-charter does not torpedo the commerciality of the overall solution, the construct must be established in jurisdictions that recognise a self-charter as a commercial activity. In Germany, for example, this would not be the case.

In addition to a charter, the yacht’s genuine private user lease is also conceivable. Still, in contrast to a commercial shipping company model, the operating costs are incurred privately. They cannot be handled via the shipping company through a profit and loss account. The genuine use lease must be calculated in real terms, and at the end of the term, it must have the usual residual market value of the yacht. This means that the lessee can decide whether to return the leased object, extend the contract if necessary or purchase the leased object at the real residual value and pay tax on the purchase price.

An interesting aspect of such “genuine” use leasing is that VAT on the leasing instalments can be structured according to use within or outside EU territorial waters. To this end, various jurisdictions give the option of providing appropriate evidence of the rate of use outside the EU, leading to a reduction in VAT.

In recent years, we have developed various arrangements to bring large yachts into circulation with measurable financial benefits for the owners and operators. Saving high liquidity is still possible, but achieving it has become more complex.

THE STERLING LACQUER MANUFACTURING COMPANY

A SHORT HISTORY

BY ANNE MCCARTHY

THE ORIGINS OF STERLING

The entity that would evolve to be the Sterling Lacquer Manufacturing Company was founded in 1907. Then it was known as the Morris Mayer Company. It subsequently became the Mitchell Mayer Company when brothers Leo J. Mitchell, born 1895, and John W. Mitchell, born 1888, joined the company.

That name remained until around 1937, when it changed to the Sterling Lacquer Manufacturing Company, reflecting its entry into the development and production of Nitrocellulose lacquer coatings. Sterling’s current president, Leo V. Mitchell, worked in the plant at an early age, on Saturdays, school holidays and during summer vacations.

Leo J. Mitchell was the first to join the Morris Mayer company around 1920 and his brother, John W. Mitchell, joined the company around 1933. John and Leo purchased the Morris Mayer company and changed the name, but sadly Leo died unexpectedly in an accident in December 1945 after which John became the president of the company.

In 1937, Sterling moved to a location in the central part of St. Louis, Missouri, and remained there until 1961 before another move to Brannon Avenue, its current location, in the southwestern part of the city.

STERLING’S CURRENT PRESIDENT

Leo V. Mitchell, who always wanted to fly, was accepted into the U.S. Naval Aviation Flight program in Pensacola, Florida, in July 1955, after completing two years of study at St. Louis University.

His father died in early 1958 while he was on duty in Japan. Leo spent four years on active duty in the U.S. Navy as a Navy pilot. He was in a squadron which flew a P2V land-based, long-range patrol aircraft built by the Lockheed Aircraft company. While their home base was at the Naval Air Station in Whidbey Island, Washington, deployments were made to Japan and Alaska. After four years of active duty, Leo returned to St. Louis University to complete his studies and remained in the Naval Reserves for an additional 10 years.

Leo began working at Sterling part-time while completing his studies at SLU in December 1961. Upon graduation, he began working full-time in various capacities, including laboratory, manufacturing, purchasing, and sales. In 1968 he became the president of Sterling Lacquer Manufacturing Company and has continued in that capacity to this day.

The business traditionally offered general industrial coatings, air-dry, and force-dry finishes of all types for industrial equipment, power tools, farm instruments, and consumer products.

In 1965, a two-component Aliphatic Polyurethane, combined with a Polyester resin was introduced into the U.S. by a large German firm, Farbenfabriken Bayer, from Leverkusen.

ENTRY INTO THE AIRCRAFT INDUSTRY

To: Simon’s Marine Ltd

As the Technical Managers of such an historical yacht as Christina O, it is a big challenge to maintain a vessel with such a standing in the Mega Yacht industry. Respecting the history and the important aesthetic factor of this vessel means deep consideration is Sterling was one of only a very few early paint manufacturers to see the possibilities for high-quality, durable aircraft undertaken as to which type of paint to use. As a result we decided to trust the products of ‘STERLING PAINTS’. Now, after ten years of use, we are in a position to say that our and marine coatings that could withstand all types of decision was correct in every aspect. environmental issues, and recognized early that these were Yours faithfully ideal raw materials for aviation, marine, railroad, and other Costas Carabelas markets needing long-term durability and resistance to all C.C.T.O. (Costas Carabelas Technical Office) types of weather and chemicals. 185 38 Piraeus -Greece Sterling decided to pursue the aircraft market first, as the company had a big interest in aviation. Trans World Airlines Simon’s Marine Ltd is a distributor of Sterling Yacht Coatings and complete Marine Finish Systems for the Eastern Mediterranean area since 1986 (TWA) were the first major airline to test Sterling’s material Simon’s Marine Ltd and after a six-month test on a Boeing 727, on January 1, 72, Akti Moutsopoulou Str.185 36, 1966, was accepted as the supplier for the exterior coating Piraeus, Greece systems on TWA aircraft. Tel + 30 210 418 1036 / + 30 210 428 4025

Subsequently, Sterling obtained contracts to supply E-mail :info@simonsmarine.gr amongst others, Delta, United Airlines, and Eastern Airlines. The company also introduced these types of highperformance coatings into the US and Canadian railroad industry for use on locomotives and cabooses. In its aerospace coatings market Sterling also supplies support coatings for aircraft manufacturers such as Lockheed, Boeing, Beech, and Cessna, plus companies in a number of other countries including Europe and the far East.

Sterling also entered the pleasure marine market in the U.S. and Europe. In 1985, Sterling acquired a marine distributor, CP Systems, located in Boom, Belgium. At that time, the name was changed to Sterling Europe N.V. Sterling became interested in CP Systems because of their highly qualified team which had been marketing, distributing, and offering technical advice for the application of these new, high-performance polyurethane coatings to their clients.

The first major yacht project in Europe that used Sterling products was the 54-metre Motor Yacht Stefaren, (now Maridome) when under construction in 1986 in Lowestoft, England. Featured in the headline painting leaving Lowestoft harbour, from the editors private collection. After the successful completion of that build, Sterling’s marine coatings were successfully introduced throughout Europe, mainly into the UK, Italy, Germany, France, Belgium, Spain, and Greece.

INVOLVEMENT IN HIGH-PERFORMANCE COATING PROJECTS

Sterling specializes in aircraft, marine, and exterior coatings for structures where extreme resistance to weather and chemicals is critical. Sterling has qualified its primers and polyurethane topcoats to meet U.S. Military specifications for aircraft use.

Sterling is a reliable and competitive supplier of High-Quality Marine finishes and looks forward to continue growing its presence in the pleasure marine market throughout Europe and the Mediterranean countries. Sterling is a small, privately-owned company, and is dedicated to increasing its European footprint and to serving its clients for many years to come.

3150 Brannon Avenue, St. Louis, MO 63139, USA Phone: (314) 776-4450 Fax: (314) 771-1858 Email: sterlac@sterlinglacquer.com